Facts about the need for transmission

As AltaLink provides power for 85 per cent of Albertans, we feel it’s important that Albertans have all of the facts about the need for transmission so the following is a list of frequently asked questions.

I’ve heard a lot about the need for transmission in the news lately – is there really a need for a new Edmonton to Calgary line?

Yes, there is a need for new transmission between Edmonton to Calgary. This need was originally announced by the independent system operator, the Alberta Electric System Operator, in 2003. Since that time our province has continued to grow and it’s time for our transmission system to catch up to this growth. Our system is also getting older and like an old car, it’s getting harder to maintain. We’ve taken good care of it but now it’s time to reinforce our system with some new lines to ensure people have power when they need it and have access to the cheapest and greenest power available.

I’ve heard a lot about Bill 50. What is Bill 50?

“Under Bill 50, the Government of Alberta will be responsible for identifying the need for critical infrastructure projects. This is no different than government being responsible for planning of other public infrastructure like roads, schools and hospitals. Bill 50 does not change the commitment to public hearings or to having directly and adversely affected Albertans share their concerns when it comes to the siting process. Landowner issues will be heard, impacts will be mitigated to the extent possible and landowners will receive fair compensation.” Government of Alberta, Energy

In August 2009, the Government of Alberta announced that in consultation with the Alberta Electric System Operator, they have concluded that two critical transmission lines are required between the Edmonton and Calgary areas – a west route and an east route. AltaLink and ATCO Electric are the two companies authorized to begin work on these two lines. These new transmission lines are absolutely needed. There are a number of factors that make this need even more urgent. In the 25 years since the last major transmission line was built, our province has grown by more than one million people and we’ve doubled our demand for power. These new lines respond to that growth and ensure power is there when you need it. Our transmission system’s average age is 38 years old. Like an old car, the transmission system will not be able to continue to run at the “red line” without creating risk for Albertans.

AltaLink’s role is to provide our customers – 85 per cent of Albertans - with the reliable and the lowest cost electricity that we need.

Does Bill 50 impact the ability to have input into the process?

Bill 50, proposed by the Government of Alberta, identifies critical transmission infrastructure such as the Edmonton to Calgary line and allows the Department of Energy approve the need for these projects, as already identified by the independent, not-for-profit AESO. It does not change the commitment to consultation or to having directly and adversely affected Albertans share their concerns when it comes to the siting process.

AltaLink places great value on consulting with individuals and landowners and their input into our projects is very important. Furthermore, it does not change the process for the AESO either as they are committed to consulting on the need and holding open houses to address concerns and gather feedback.

How will Bill 50 change the existing regulatory process?

Under the current regulatory environment the need for new transmission infrastructure is approved by the regulatory body, the Alberta Utilities Commission (AUC). Under the proposed new legislation, the Government of Alberta will approve the need for projects it deems “critical”, not the AUC. However, the AUC will still be responsible for overseeing public hearings and approving Facilities Applications as they do today.

How will the new transmission lines affect my electricity bill?

The two new lines between the Edmonton and Calgary regions will cost up to $3 a month on the average residential electricity bill. But it’s important to remember that one line will pay for itself in its savings. By reducing line losses (line losses are power that escapes off the line and the amount lost is less as the voltage increases) which saves consumers money as the system works more efficiently and reducing our dependence on high-cost generators in lieu of transmission lines, Alberta consumers will save the equivalent of the costs of one line. The AESO’s 2004 Need Study estimates a 90 MW line loss reduction through the new transmission line.

Relying on one source of generation in one location, such as gas-fired generation, means that we are putting all our eggs in one basket and creates a reliability and financial risk. We support local generation however transmission needs to be in place to enable all types of generation to get to the market to provide a competitive market, giving Albertans access to the lowest cost power Alberta has to offer.

AltaLink is passionate about what we do and we are committed to providing safe, reliable and cost effective power to our customers – serving 85% of Albertans. That means the power will be there when you need it and at a reasonable cost.

Is this line for export?

No, this line is needed to secure reliable power for Albertans. The fact is, in the past six years, Alberta has been a net importer of electricity, including in 2008 when we imported almost four times the amount of electricity we exported. We bring electricity into the province to help meet the ever-increasing need. New transmission lines will help move greener, cheaper sources of energy to Alberta’s growing communities, not to export to the U.S.

Why is AltaLink speaking out in this “electricity debate”?

Serving 85 per cent of Alberta, we have a broad customer base and we feel it’s important that Albertans have the facts about our province’s electricity needs and costs. Transmission is required in our province not only to keep up with increasing demand and to replace our aging facilities, but also to ensure that customers have access to the lowest cost of power available.

Where can I get more information?

• Contact us at public.affairs@altalink.ca
• Watch a video about the need for transmission in Alberta.
• Visit the AESO website for more information on our province’s electricity needs and how these are planned at www.poweringalberta.com and www.aeso.ca

In the news:

• Interview with Martin Merritt, former Market Surveillance Administrator on Alberta's Transmission Debate - Rutherford Show, QR77, January 15, 2010 (interview begins 7 minutes into the segment)
• Power grid operator insists on upgrades - Calgary Sun, October 15, 2009

• From Premier Ed Stelmach's Wednesday, October 14, 2009 TV address:

  On electricity transmission lines:

  "I know you're hearing conflicting messages about whether we need additional transmission ... Our system is aging, congested and inefficient. We wouldn't tolerate that situation with Alberta's highways. We cannot accept a second-rate transmission system."

  Premier welcomes powerline feedback - Calgary Sun, October 5, 2009